‘Large Cap Makes More Sense’: Patterson
Online Producer
Investors would do well to trim high-yield exposure and move into large-cap stocks, Bessemer Trust Managing Director Rebecca Patterson said Wednesday on CNBC.
Reacting on "Fast Money" to breaking news that Appaloosa Management's David Tepper prediction that the S&P 500 could rise 20 percent for 2013, Patterson said that she wasn't convinced.
(Read More: Tepper Believes Stocks Could Run Up 20 Percent This Year)
"It's not impossible, but I'm certainly constructive," she said. "And I would agree that while we aren't seeing a lot of evidence yet of bonds into stocks, we are seeing cash into stocks."
Investors, Patterson added, were finally shaking off fears of such headwinds as sequestration and Washington gridlock.
Patterson, with $50 billion in assets under management, also said that she was trimming exposure to high-yield stocks and seeing upside in large-cap U.S. stocks and Japanese equities.
"But at this point with valuations, we think that large cap makes more sense," she said.
Within that segment, Patterson said that energy stocks appeared attractive, although she wasn't yet a buyer.
"It's been very unloved for the last couple of months," she said. "Better valuations, and maybe it's a catch-up."
Trader disclosure: On March 13, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long JPM CALLS; Jon Najarian is long TJX CALLS; Jon Najarian is long FIG CALLS; Jon Najarian is long BX CALLS; Jon Najarian is long KKR CALLS; Jon Najarian is long GT; Jon Najarian is long SLV CALLS; Pete Najarian is long AAPL CALLS; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long CSCO CALLS; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long WHR CALLS; Pete Najarian is long AMZN CALLS; Pete Najarian is long BX; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TGT; Josh Brown is long KORS; Josh Brown is long LOW; Josh Brown is long IEO; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long SBUX; Stephanie Link is long FB; Stephanie Link is long TJX; Stephanie Link is long TTS.
